Hong Kong's Bitcoin and Ether ETFs Suffer Historic Outflows, Erasing All Gains Since Launch
Summary:
Hong Kong's Bitcoin and Ether exchange-traded funds (ETFs) experienced the largest net outflow ever recorded on May 13, wiping out all gains since their inception less than two weeks ago. Bitcoin ETFs managed by Bosera, ChinaAMC, and Harvest Global reported net outflows of $32.7 million, according to data from Farside Investors. Ether ETFs from these issuers registered joint net outflows totaling $6.6 million. This marks the third straight trading day of net outflows for crypto ETFs in Hong Kong, with total withdrawals of $52.5 million since May 9.
On Monday, May 13, Hong Kong’s Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) experienced the most significant net outflow ever recorded, thereby erasing all progress made since their inception less than two weeks earlier. According to data from Farside Investors, Bitcoin ETFs managed by Bosera, ChinaAMC, and Harvest Global noted net outflows of $32.7 million, with ChinaAMC’s Bitcoin fund reporting the highest loss of the day, with $15.5 million in outflows. Concurrently, Ether ETFs from these issuers also registered joint net outflows totaling $6.6 million, with Harvest Global and ChinaAMC each witnessing $3 million in outflows. As of Monday, from the commencement of trading on April 30, the combined funds have observed total outflows of $20.9 million, surpassing the total inflows of $18.4 million recorded as of Friday, May 10. The data from Farside Investors showed that since May 2, there has been a decline in the Hong Kong BTC and ETH ETF flows. This marks the third consecutive trading day where crypto ETFs in Hong Kong have suffered net outflows; a total of $52.5 million has been withdrawn from the funds since May 9. This also marks the first instance of outflows from Harvest Global's Bitcoin ETF, totaling $9.8 million. BTC was traded below $61,000 over the weekend, a trend that many believe is part of post-halving fallout. The rewards for Bitcoin mining were reduced by 50% on April 20 – a scarcity measure embedded into the blockchain that usually triggers a drop in Bitcoin's price in the weeks that follow, as the market adjusts to the new issuance schedule. Compared to the United States, the crypto ETF market in this region is significantly smaller in terms of both the funds available and assets managed. The 11 Bitcoin ETFs in the U.S. manage over $50 billion in assets, whereas Hong Kong's ETFs manage $179.2 million, shared by an 88.5% share for Bitcoin ETFs, with the remaining space allocated to Ether ETFs, as reported by SoSoValue.
Published At
5/14/2024 3:36:20 AM
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